give in order to pay for the devel- opment of that software and the head unit required to include it. It appears that better sound is going to take the hit. Traditional audio brands are destroying their names in the
brand space by focusing on $99 Bluetooth speakers. No true audio enthusiast would consider this acceptable audio. Woofers have to be bigger than a quarter. “It sounds great for what it is” isn’t good enough for enthusiasts and making disposable prod- ucts to help customers minimize purchase risk is turning once great audio brands into Philips clones. Phone connectivity is going to be the focus of the automakers, and audio is going to fall by the wayside. When that happens, consumers will increasingly be looking for better audio solu- tions and that’s good for the aftermarket. Big public companies are in trouble in this category. They
have to grow and there isn’t a lot of room for growing from $200 million to $300 million without selling cheap stuff to people who don’t care and that’s a brand killer. You can’t be on the Amazon marketplace selling products for $50 when that same product retails with the independents at $200 and expect to maintain profitability for long. The reason we think this will be a successful venture is that the
best market for aftermarket audio is in the premium segment. There’s profit to be made if you look to satisfy your best customers. There’s a big misconception that everybody looking to buy every- thing wants to pay less. Car audio is not a consumer product like toothpaste and potato chips. It’s an enthusiast product. People buy this stuff because they love it. You don’t have to buy speakers. Car audio is once again becoming an enthusiast business done through specialty retail; that’s where the opportunity is. ME: Where does the brand fit into a retailer’s product mix? Wehmeyer: We’ll sell premium product at premium prices.
The products are designed to enhance a fabricator’s ability, not to eliminate the need for great techs. The installation kits included with the speakers have been designed to help retail- ers do beautiful custom installations in record time. These are products built by installers for installers. In terms of audio performance, I’ll put these things up against anything. In bench- marking our products, we’ve used high-end home and car audio and I’m pleased to say we’ve outperformed all of them. Besides market-leading performance, we’ve focused on instal-
lability, and a mix of products that make the most popular configurations easy. We’re not here to sell the least expensive thing that doesn’t absolutely suck; we want to sell great speakers to people who love great sound, through retailers who are focused on great service. ME: What kind of customers are you hoping to attract with your products? Wehmeyer: We’re after upscale car audio enthusiasts and music lovers. The demographic of that customer has changed over the years. It used to be males between 16 and 24 years
old, but it now skews a bit older and wealthier, at least in the premium segment. Significant others are also involved in these purchases and we wanted a name and a feel that wasn’t an immediate turn-off for women. In a sea of
ultra-macho transformer-esque brands and designs, we think there’s an opportunity for something friendlier and more con- temporary. Audiofrog is a name nobody forgets. The super macho guys don’t really like it at first. We hope the product will be good enough that they’ll get over it and many of them have already. The logo and the brand often makes females smile. Criminal Death Power Audio or Audiofrog? Audio is not particularly friendly. It’s macho, very exclusive
and exclusionary. We’re looking to show that it can be friendly and fun. We want to provide helpful support that’s straightfor- ward and based in fact. ME: What kinds of margins can retailers expect? Wehmeyer: We don’t want a gotcha sales promotion. The margins are going to be good; we certainly want the programs to be easy to understand with effective incentives that reward business done the right way. I won’t make a blanket statement about what those margins and programs are going to be. We’re really committed to doing business through specialists and we’ll enforce a MAP policy. Sheet margin is theoretical. Margins you can actually get have a lot to do with who else is selling the product. Our plan doesn’t include thousands of retailers and programs designed to sell woofers by the truckload. ME: Will there be any territorial restriction? Wehmeyer: Absolutely. If you’re a dealer in Appleton WI, you’re
gonna be the dealer in Appleton WI. In big cities like L.A., we’ll need more than one dealer. We’ll do our best to provide exclusivity in well-defined markets. This comes from real conversations with customers. We’re looking for agreements, not leverage. Leverage sucks. No one likes to be leveraged. We prefer more positive moti- vation. Brick and mortar dealers aren’t going to be allowed to sell online. Shipping in other markets will be forbidden. Car audio is dying in the big boxes. I think that will ultimately
be good for the industry, but it’s going to be a painful adjust- ment for commodity sellers. Audiofrog isn’t an opportunity for the big boxes and we aren’t interested in going there. ME: What is the most important thing you want car audio enthusiasts and retailers to know about this brand as you move forward? Wehmeyer: We want friendly and productive relationships with consumers, customers and suppliers. If you wake up on Audiofrog day and think, “Man, I wish I could stay in bed,” then that doesn’t make sense for anyone. We’ve chosen a brand name and a logo that make people smile. We’re developing some killer products that will make people smile, too. We want doing busi- ness with us to be fun and friendly. Products and services that exceed expectations are a big part of that. Real involvement in the industry and advocacy for the betterment of skills at all levels is important to us and we’re eager to do our part.
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